Hong Kong Launches ‘Digitally Native’ Bonds to Intensify Crypto Hub Ambitions
Hong Kong is advertising multi-currency digital bonds for the third time, with an purpose to change into a worldwide hub for digital property.
Bloomberg reported Monday that the brand new set of “digitally native” bonds shall be denominated in US {dollars}, Hong Kong {dollars}, euros and offshore yuan. Sources conversant in the transfer mentioned that the deal might be priced as early as Monday.
A digital bond is a kind of safety issued and managed utilizing blockchain know-how. The blockchain permits the bond’s particulars and possession to be recorded securely and transparently on a digital ledger.
The newest providing of digitally native bonds throughout a number of currencies could be issued on public blockchains like Ethereum or by way of DLT platforms provided by HSBC Holdings or Goldman Sachs.
Digital Bonds Gain Traction in Hong Kong
Hong Kong’s newest transfer builds on the town’s established tokenized bond frameworks introduced in 2024. The HKMA introduced its second tokenized green bond in 2023, aiming to leverage blockchain for transparency within the redemption course of.
Besides, Hong Kong has solidified its place as Asia’s leading international bond issuance hub. It accounts for almost 30% of Asian worldwide bond issuances, topping the regional league desk for 9 years.
The announcement to promote digital inexperienced bonds comes days after international asset supervisor Franklin Templeton launched Hong Kong’s first tokenized money-market fund. The fund makes use of blockchain to enhance transparency and transaction effectivity and is initially open to institutional traders.
Further, Hong Kong-based corporates concern no less than six digital notes, Bloomberg famous. These notes have raised a complete of $1 billion with 4 launching this yr.
Rain Yin, Director at S&P Global Ratings, mentioned that the agency has given AA+ score to the proposed digital notes. “Those are mitigated by a plan that requires, in the end, shifting the notes to the standard techniques in case of disruption.”
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